SRG expects major job cuts if the media levy is reduced
Published: Monday, Nov 20th 2023, 14:20
Updated At: Monday, Nov 20th 2023, 14:23
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The SRG opposes the reduction in radio and television fees proposed by the Federal Council. According to the SRG, the implementation of the counter-proposal to the halving initiative threatens to result in around 900 job losses by 2027.
SRG announced in Bern on Monday that roughly the same number of jobs would be cut at suppliers and other third-party companies. The reduction in staff would affect all SRG locations, including the regional studios.
The reduction in levies and other financial challenges would result in a funding gap of up to CHF 240 million from 2027, SRG wrote. According to SRG, the funding gap is made up of several factors. From 2027, the reduction in levies would result in a loss of revenue of up to CHF 100 million.
In addition, the Federal Council has abolished the SRG's cost-of-living adjustment since 2019, which will lead to a reduced contribution of up to CHF 70 million from 2025. Due to the decline in advertising revenue, SRG expects a further decrease of around CHF 70 million by 2027.
SRG has a cost structure in which personnel costs account for around 50 percent. All reductions at SRG would therefore be accompanied by a corresponding reduction in staff, according to SRG. As a result, around 900 jobs at all SRG locations, suppliers and other third-party companies will be gradually cut by 2027. SRG employs 6,957 people, as can be seen in the SRG Annual Report 2022. They share 5580 full-time positions.
Impact on the program feared
According to SRG, a reduction in staff would have drastic consequences for the program. According to them, the fulfillment of the performance mandate would be at risk from 2025. Jean-Michel Cina, Chairman of the Board of Directors of SRG, said on the SRF1 radio program "Rendez-vous": "With the measures announced, we would no longer be able to fulfill the comprehensive performance mandate from 2027."
According to SRG, the budget reduction would mean that many outside productions and broadcasts of events would no longer be possible. In addition to church services and music recordings in the cultural sector, world and European championships in sport would also be affected. In addition, the number of Swiss films and series as well as the radio and TV research supported by SRG would have to be reduced.
In contrast, the SRG concession, which defines the service mandate, will remain unchanged until 2028. Based on the license, SRG offers 17 radio and seven TV channels in the four national languages as well as online offerings in four national languages and in six other languages for the international offering.
SRG expects no to initiative
The SRG welcomes the Federal Council's decision to reject the halving initiative, it said. However, the unavoidable consequences are noted with concern. SRG continues to expect appropriate funding from the Federal Council for the existing performance mandate. It also assumes that the people will reject this initiative because it is far too radical and endangers the existence of the SRG.
The Federal Council's counter-proposal to the so-called "halving initiative" presented by Federal Councillor Albert Rösti on November 8 envisages a gradual reduction in household taxes to CHF 300 per person per year by 2029. In addition, companies should only be subject to the tax if their turnover exceeds CHF 1.2 billion.
This is not a counter-proposal in the legal sense. This is because the Federal Council can implement the changes by ordinance.
The SRG's statement is supported by the Swiss Syndicate of Media Professionals (SSM). The Swiss media location must be protected and not additionally weakened without necessity, the SSM wrote in a press release on Monday. Numerous SRG employees are unionized in the SSM. The union is SRG's most important social partner.
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